🏦LTB
Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questionmediumAgent Registration — Termination

In a state-administrator case study, the scenario starts here. Assume the administrator is testing the cleanest state-law answer. When an agent's employment with a registered broker-dealer is terminated, who is responsible for notifying the state Administrator?

  1. AOnly the agent
  2. BOnly the broker-dealer
  3. CBoth the agent and the broker-dealer must promptly notify the Administrator✓ Correct answer
  4. DThe Administrator is automatically notified through FINRA
Explanation

Why CBoth the agent and the broker-dealer must promptly notify the Administrator

Under USA Section 202(c), when an agent ceases to be employed by a broker-dealer, both the agent and the broker-dealer must promptly notify the state Administrator. This dual notification requirement ensures the Administrator receives timely and accurate information about changes in agent registration status. The governing USA principle is unchanged even though the framing is different.

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